Ex-China offer prices of cold rolled coil (CRC) have increased sharply over the past week amid the rising trend in the local CRC market and higher raw material prices.
At present, export offers for CRC given by major Chinese mills are at $495-500/mt FOB for late July, up by $25/mt compared to May 27, following an uptrend over the previous week. The reference deal price range has been assessed by market sources at $475-480/mt FOB to Southeast Asia and South America. Most steelmakers are focused on the local market, and are thus only offering very few volumes for export. Demand from overseas markets has not recovered yet.
The sharp increase in iron ore prices since last week and the uptrend in the HRC segment have led to a big rise in CRC prices. During the given week, ferrous metal futures prices have moved up further, bolstering CRC prices. Meanwhile, inventories of CRC are at relatively low levels, with a few products being in short supply. It is thought that CRC prices in the Chinese domestic market will move sideways in the coming week. Average domestic 1.0 mm cold rolled coil spot prices in China are at RMB 4,010/mt ($564.2/mt) ex-warehouse, up RMB 100/mt ($14.1/mt) compared to May 27, according to SteelOrbis’ information.
As of June 3, HRC futures at the Shanghai Futures Exchange are standing at RMB 3,525/mt ($496/mt), increasing by RMB 106/mt ($14.9/mt) or 3.1 percent since May 27.
$1 = RMB 7.1074
